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        <li class="chapter " data-level="1.1" data-path="../">
            
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                    Introduction
            
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        <li class="chapter " data-level="1.2" data-path="../Lecture01/">
            
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                    Lecture 1: Introduction
            
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        <li class="chapter " data-level="1.3" data-path="./">
            
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                    Lecture 2: Economics is a Social Science
            
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        <li class="chapter " data-level="1.3.1" data-path="Section01.html">
            
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                    Section1: Economics is a Science – Methodology of Science (1): Refutability
            
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        <li class="chapter " data-level="1.3.2" data-path="Section02.html">
            
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                    Section 2: Economics is a Social Science
            
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                    Section 3: Why Do We Need to Study Economics?
            
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        <li class="chapter " data-level="1.4" data-path="../Lecture03/">
            
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                    Lecture 3: Self-interest: the Postulate of Economics
            
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        <li class="chapter " data-level="1.4.1" data-path="../Lecture03/Section01.html">
            
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                    Section 1: Self-interest
            
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        <li class="chapter " data-level="1.4.2" data-path="../Lecture03/Section02.html">
            
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                    Section 2: The Postulate Needs not to be True
            
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        <li class="chapter " data-level="1.4.3" data-path="../Lecture03/Section03.html">
            
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                    Section 3: The Postulate of Self-interest Must be Followed
            
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        <li class="chapter " data-level="1.4.4" data-path="../Lecture03/Section04.html">
            
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                    Section 4: Rationality is not Equivalent to Correctness
            
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        <li class="chapter " data-level="1.4.5" data-path="../Lecture03/Section05.html">
            
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                    Section 5: The Consequences of Ignoring the Postulate of Self-interest
            
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        <li class="chapter " data-level="1.5" data-path="../Lecture04/">
            
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                    Lecture 4: Scarcity, Competition, Market, and Non-market
            
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                    Section 1: Scarcity
            
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        <li class="chapter " data-level="1.5.2" data-path="../Lecture04/Section02.html">
            
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                    Section 2: Competition, Competition Criterion, and Game rule
            
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        <li class="chapter " data-level="1.5.3" data-path="../Lecture04/Section03.html">
            
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                    Section 3: The Postulate of Self-interest Must be Followed
            
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        <li class="chapter " data-level="1.6" data-path="../Lecture05/">
            
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                    Lecture 5: Positive Economics and Normative Economics
            
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                    Section1: Positive economics
            
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        <li class="chapter " data-level="1.6.2" data-path="../Lecture05/Section02.html">
            
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                    Section 2: Normative economics
            
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        <li class="chapter " data-level="1.6.3" data-path="../Lecture05/Section03.html">
            
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                    Section3: Value Judgment
            
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        <li class="chapter " data-level="1.6.4" data-path="../Lecture05/Section04.html">
            
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                    Section 4: The Problems of Welfare Economics
            
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        <li class="chapter " data-level="1.7" data-path="../Lecture06/">
            
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                    Lecture 6: The History of Economic Thinking -- Microeconomics and Macroeconomics
            
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        <li class="chapter " data-level="1.7.1" data-path="../Lecture06/Section01.html">
            
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                    Section 1: From Classical Economics to Neoclassical Economics
            
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        <li class="chapter " data-level="1.7.2" data-path="../Lecture06/Section02.html">
            
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                    Section 2: The Rise and Decline of Keynesian Economics
            
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        <li class="chapter " data-level="1.7.3" data-path="../Lecture06/Section03.html">
            
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                    Section 3: Price Theory and Monetary Theory
            
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                    Section 4: The Causes of the Great Depression
            
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        <li class="chapter " data-level="1.7.5" data-path="../Lecture06/Section05.html">
            
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                    Section 5: More Truths about the Great Depression
            
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        <li class="chapter " data-level="1.8" data-path="../Lecture07/">
            
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                    Lecture 7: Equilibrium•Optimum•Margin
            
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                    Section 1: Equilibrium and Optimum
            
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        <li class="chapter " data-level="1.8.2" data-path="../Lecture07/Section02.html">
            
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                    Section 2: The Concept of Margin
            
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                    Section 3: The Economic Implication of Marginal Analysis
            
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        <li class="chapter " data-level="1.9" data-path="../Lecture08/">
            
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                    Lecture 8: The Law of Demand
            
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        <li class="chapter " data-level="1.9.1" data-path="../Lecture08/Section01.html">
            
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                    Section 1: The Law of Demand and its Key Points
            
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        <li class="chapter " data-level="1.9.2" data-path="../Lecture08/Section02.html">
            
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                    Section 2: Ceteris Paribus
            
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        <li class="chapter " data-level="1.9.3" data-path="../Lecture08/Section03.html">
            
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                    Section 3: The Explanation of “Buying on the upswing, Selling on the downswing” in the Stock Market
            
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        <li class="chapter " data-level="1.9.4" data-path="../Lecture08/Section04.html">
            
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                    Section 4: The Selection of Other Factors –Methodology of Science (2): Occam’s Razor
            
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        <li class="chapter " data-level="1.9.5" data-path="../Lecture08/Section05.html">
            
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                    Section 5: The Role of the Law of Demand as An axiom
            
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        <li class="chapter " data-level="1.10" data-path="../Lecture09/">
            
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                    Lecture 9: Supply Curve, the Theory of Supply and Demand, the Price Intervention by Government
            
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        <li class="chapter " data-level="1.10.1" data-path="../Lecture09/Section01.html">
            
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                    Section 1: The Supply Curve
            
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        <li class="chapter " data-level="1.10.2" data-path="../Lecture09/Section02.html">
            
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                    Section 2: The Theory of Supply and Demand
            
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        <li class="chapter " data-level="1.10.3" data-path="../Lecture09/Section03.html">
            
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                    Section 3: The Traditional Analysis of Price Control and Its Problem
            
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        <li class="chapter " data-level="1.10.4" data-path="../Lecture09/Section04.html">
            
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                    Section 4: Price Control Causes Transaction Cost to Increase
            
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        <li class="chapter " data-level="1.10.5" data-path="../Lecture09/Section05.html">
            
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                    Section 5: Minimum Wage Laws Cause Unemployment
            
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        <li class="chapter " data-level="1.10.6" data-path="../Lecture09/Section06.html">
            
                <a href="../Lecture09/Section06.html">
            
                    
                    Section 6: The Consequence of Agricultural Price Supports
            
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        <li class="chapter " data-level="1.11" data-path="../Lecture10/">
            
                <a href="../Lecture10/">
            
                    
                    Lecture 10: Consumer Theory
            
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        <li class="chapter " data-level="1.11.1" data-path="../Lecture10/Section01.html">
            
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                    Section 1: Two Axioms of Consumer Theory
            
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        <li class="chapter " data-level="1.11.2" data-path="../Lecture10/Section02.html">
            
                <a href="../Lecture10/Section02.html">
            
                    
                    Section 2: Use Value VS Utility — Methodology of Science (3): What is measure in science?
            
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        <li class="chapter " data-level="1.11.3" data-path="../Lecture10/Section03.html">
            
                <a href="../Lecture10/Section03.html">
            
                    
                    Section 3: Indifference Curve
            
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        <li class="chapter " data-level="1.11.4" data-path="../Lecture10/Section04.html">
            
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                    Section 4: The Optimum of the Consumer
            
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        <li class="chapter " data-level="1.11.5" data-path="../Lecture10/Section05.html">
            
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                    Section 5: The Changes of the Optimum of the Consumer
            
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        <li class="chapter " data-level="1.11.6" data-path="../Lecture10/Section06.html">
            
                <a href="../Lecture10/Section06.html">
            
                    
                    Section 6: Are there Giffen Goods?
            
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        <li class="chapter " data-level="1.11.7" data-path="../Lecture10/Section07.html">
            
                <a href="../Lecture10/Section07.html">
            
                    
                    Section 7: From Individual Demand to Market Demand
            
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        <li class="chapter " data-level="1.11.8" data-path="../Lecture10/Section08.html">
            
                <a href="../Lecture10/Section08.html">
            
                    
                    Section 8: Is There Theory of Elasticity?
            
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        <li class="chapter " data-level="1.12" data-path="../Lecture11/">
            
                <a href="../Lecture11/">
            
                    
                    Lecture 11: The Concept of Cost
            
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        <li class="chapter " data-level="1.12.1" data-path="../Lecture11/Section01.html">
            
                <a href="../Lecture11/Section01.html">
            
                    
                    Section 1: Opportunity Cost
            
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        <li class="chapter " data-level="1.12.2" data-path="../Lecture11/Section02.html">
            
                <a href="../Lecture11/Section02.html">
            
                    
                    Section 2: Historical Cost is not Cost
            
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        <li class="chapter " data-level="1.12.3" data-path="../Lecture11/Section03.html">
            
                <a href="../Lecture11/Section03.html">
            
                    
                    Section3: The Disturbance of Historical Cost
            
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        <li class="chapter " data-level="1.12.4" data-path="../Lecture11/Section04.html">
            
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                    Section 4: The Laboratory in Economics
            
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        <li class="chapter " data-level="1.13" data-path="../Lecture12/">
            
                <a href="../Lecture12/">
            
                    
                    Lecture 12: The Concept of Rent
            
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        <li class="chapter " data-level="1.13.1" data-path="../Lecture12/Section01.html">
            
                <a href="../Lecture12/Section01.html">
            
                    
                    Section 1: From Income and Cost to Rent
            
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        <li class="chapter " data-level="1.13.2" data-path="../Lecture12/Section02.html">
            
                <a href="../Lecture12/Section02.html">
            
                    
                    Section 2: The Changeable Rent
            
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        <li class="chapter " data-level="1.13.3" data-path="../Lecture12/Section03.html">
            
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                    Section 3: The Concept of Rent from the First Perspective
            
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        <li class="chapter " data-level="1.13.4" data-path="../Lecture12/Section04.html">
            
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                    Section 4: The Concept of Rent from the Second Perspective
            
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        <li class="chapter " data-level="1.13.5" data-path="../Lecture12/Section05.html">
            
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                    Section 5: Profit
            
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        <li class="chapter " data-level="1.14" data-path="../Lecture13/">
            
                <a href="../Lecture13/">
            
                    
                    Lecture 13: Direct Cost and Overhead Cost
            
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        <li class="chapter " data-level="1.14.1" data-path="../Lecture13/Section01.html">
            
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                    Section 1: The Fallacy of Fixed Cost
            
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        <li class="chapter " data-level="1.14.2" data-path="../Lecture13/Section02.html">
            
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                    Section 2: Direct Cost and Overhead Cost
            
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        <li class="chapter " data-level="1.14.3" data-path="../Lecture13/Section03.html">
            
                <a href="../Lecture13/Section03.html">
            
                    
                    Section 3: The Explanation of Producers’ Behaviors with Overhead Cost
            
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        <li class="chapter " data-level="1.14.4" data-path="../Lecture13/Section04.html">
            
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                    Section 4: The Principle of Rent Matching
            
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        <li class="chapter " data-level="1.14.5" data-path="../Lecture13/Section05.html">
            
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                    Section 5: The Form of Contract Affects Overhead Cost
            
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        <li class="chapter " data-level="1.15" data-path="../Lecture14/">
            
                <a href="../Lecture14/">
            
                    
                    Lecture 14: Transaction Cost
            
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        <li class="chapter " data-level="1.15.1" data-path="../Lecture14/Section01.html">
            
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                    Section 1: Transaction Cost is Indispensable
            
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        <li class="chapter " data-level="1.15.2" data-path="../Lecture14/Section02.html">
            
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                    Section 2: The History of Transaction Cost
            
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        <li class="chapter " data-level="1.15.3" data-path="../Lecture14/Section03.html">
            
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                    Section 3: From the Special Transaction Cost to the General Transaction Cost — Methodology of Science (4): Ad Hoc Theory
            
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        <li class="chapter " data-level="1.15.4" data-path="../Lecture14/Section04.html">
            
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                    Section 4: The Perspective of Contract
            
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        <li class="chapter " data-level="1.16" data-path="../Lecture15/">
            
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                    Lecture 15: Market Structure – Price-Taking
            
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        <li class="chapter " data-level="1.16.1" data-path="../Lecture15/Section01.html">
            
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                    Section 1: The Definition of Price-Taking
            
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        <li class="chapter " data-level="1.16.2" data-path="../Lecture15/Section02.html">
            
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                    Section 2: The Optimum of Producers
            
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        <li class="chapter " data-level="1.16.3" data-path="../Lecture15/Section03.html">
            
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                    Section 3: The Law of Diminishing Marginal Product
            
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        <li class="chapter " data-level="1.16.4" data-path="../Lecture15/Section04.html">
            
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                    Section 4: Average Cost
            
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        <li class="chapter " data-level="1.16.5" data-path="../Lecture15/Section05.html">
            
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                    Section 5: The Theory of Supply and Demand with Production
            
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        <li class="chapter " data-level="1.16.6" data-path="../Lecture15/Section06.html">
            
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                    Section 6: Consumer Surplus and Producer Surplus
            
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        <li class="chapter " data-level="1.17" data-path="../Lecture16/">
            
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                    Lecture 16: Market Structure – Price-Searching
            
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        <li class="chapter " data-level="1.17.1" data-path="../Lecture16/Section01.html">
            
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                    Section 1: The Definition of Price-Searching
            
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        <li class="chapter " data-level="1.17.2" data-path="../Lecture16/Section02.html">
            
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                    Section 2: The Cause of Monopoly (I): Innate Talent
            
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                    Section 3: The Cause of Monopoly (II): Acquired Construction
            
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                    Section 4: The Ambiguous Antitrust Law
            
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                    Section 5: Administrative Monopoly
            
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                    Section 6: The Deadweight Loss of Monopoly
            
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                    Section 7: Turning Consumer Surplus to Producer Surplus
            
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                    Section 8: The Other Price Arrangements to Eliminate Deadweight Loss
            
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        <li class="chapter " data-level="1.17.9" data-path="../Lecture16/Section09.html">
            
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                    Section 9: Quality Competition
            
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                    Section 10: Cartels
            
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                    Section 11: The Fallacy of Game Theory
            
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        <li class="chapter " data-level="1.18" data-path="../Lecture17/">
            
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                    Lecture 17: Information Cost
            
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                    Section 1: Information Cost in Society
            
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        <li class="chapter " data-level="1.18.2" data-path="../Lecture17/Section02.html">
            
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                    Section 2: The Behaviors Reducing Information Cost
            
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        <li class="chapter " data-level="1.18.3" data-path="../Lecture17/Section03.html">
            
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                    Section 3: The Behaviors Increasing Information Cost
            
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        <li class="chapter " data-level="1.18.4" data-path="../Lecture17/Section04.html">
            
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                    Section 4: The Price-Searching Caused by Information Cost
            
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                    Section 5: Replacing Risk with Information Cost
            
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        <li class="chapter " data-level="1.18.6" data-path="../Lecture17/Section06.html">
            
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                    Section 6: Insurance
            
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        <li class="chapter " data-level="1.18.7" data-path="../Lecture17/Section07.html">
            
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                    Section 7: Adverse Selection and Moral Hazard
            
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        <li class="chapter " data-level="1.18.8" data-path="../Lecture17/Section08.html">
            
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                    Section 8: The Extremely Low Rate of Return of Social Pension Insurance
            
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        <li class="chapter " data-level="1.18.9" data-path="../Lecture17/Section09.html">
            
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                    Section 9: SOP is An Irrelevant Answer
            
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        <li class="chapter " data-level="1.19" data-path="../Lecture18/">
            
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                    Lecture 18: The Theory of Interest
            
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                    Section 1: The Causes of Interest
            
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        <li class="chapter " data-level="1.19.2" data-path="../Lecture18/Section02.html">
            
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                    Section 2: Interest Rate
            
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        <li class="chapter " data-level="1.19.3" data-path="../Lecture18/Section03.html">
            
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                    Section 3: The Discount Formula
            
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        <li class="chapter " data-level="1.19.4" data-path="../Lecture18/Section04.html">
            
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                    Section 4: From Asset to Capital, Annuity, Investment and Saving
            
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        <li class="chapter " data-level="1.19.5" data-path="../Lecture18/Section05.html">
            
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                    Section 5: The Separation Theorem
            
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        <li class="chapter " data-level="1.20" data-path="../Lecture19/">
            
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                    Lecture 19: Monetary Theory
            
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                    Section 1: The Functions of Money
            
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        <li class="chapter " data-level="1.20.2" data-path="../Lecture19/Section02.html">
            
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                    Section 2: The Value of Good VS the Value of Money
            
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        <li class="chapter " data-level="1.20.3" data-path="../Lecture19/Section03.html">
            
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                    Section 3: The Cause of Inflation
            
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        <li class="chapter " data-level="1.20.4" data-path="../Lecture19/Section04.html">
            
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                    Section 4: The History of Money
            
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                    Section 5: The Harm of Inflation and Deflation
            
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        <li class="chapter " data-level="1.20.6" data-path="../Lecture19/Section06.html">
            
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                    Section 6: The History of Paper Money
            
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        <li class="chapter " data-level="1.20.7" data-path="../Lecture19/Section07.html">
            
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                    Section 7: The Truth of Bretton Woods System
            
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        <li class="chapter " data-level="1.20.8" data-path="../Lecture19/Section08.html">
            
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                    Section 8: The Quantity Theory of Money
            
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        <li class="chapter " data-level="1.20.9" data-path="../Lecture19/Section09.html">
            
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                    Section 9: Money Multiplier
            
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        <li class="chapter " data-level="1.20.10" data-path="../Lecture19/Section10.html">
            
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                    Section 10: The Monetary Policy Tools of Central Bank
            
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        <li class="chapter " data-level="1.20.11" data-path="../Lecture19/Section11.html">
            
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                    Section 11: The Difficulty in the Target of Monetary Policy
            
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        <li class="chapter " data-level="1.20.12" data-path="../Lecture19/Section12.html">
            
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                    Section 12: The Formation of Zhu’s Monetary System
            
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                    Section 13: From the Monetary Policy Regulating Economy to the Monetary System Stabilizing Money Value
            
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        <li class="chapter " data-level="1.20.14" data-path="../Lecture19/Section14.html">
            
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                    Section 14: The Monetary System Pegging Money to the Price Index of a Basket of Tradable Goods
            
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        <li class="chapter " data-level="1.21" data-path="../Lecture20/">
            
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                    Lecture 20: Income Distribution, Wage Contract, Unemployment
            
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                    Section 1: Income Distribution: Marginal Productivity Theory
            
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        <li class="chapter " data-level="1.21.2" data-path="../Lecture20/Section02.html">
            
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                    Section 2: Wage Contract
            
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                    Section 3: The Theory of Rent-encroaching
            
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                    Section 4: The Causes of Unemployment
            
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                    Section 5: Natural Rate of Unemployment
            
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        <li class="chapter " data-level="1.22" data-path="../Lecture21/">
            
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                    Lecture 21: The Critique on Keynes’s Theory of National Income Determination
            
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                    Section 1: The Statistical Index of National Income: GDP
            
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                    Section 2: Is Saving Different From Investment?
            
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                    Section 3: The Problem in the Theory of Multiplier
            
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                    Section 4: The Problem in Keynes’s Consumption Function
            
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                    Section 5: The Pandora’s Box of Fiscal Deficit
            
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                    Section 6: The Crowding-out Effect of Government Expenditure
            
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                    Lecture 22: Business Cycle and Economic Growth
            
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                    Section 1: Financial Crisis cannot Destroy Real Wealth
            
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                    Lecture 23: Coase Theorem
            
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                    Section 1: The First Version of Coase Theorem
            
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                    Section 2: The Second Version of Coase Theorem
            
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                    Section 3: The Third Version of Coase Theorem
            
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                    Lecture 24: Externality
            
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                    Section 1: The Cause of Externality
            
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                    Lecture 25: Rent Dissipation
            
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                    Section 1: The Concept of Rent Dissipation
            
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                    Section 2: The Relation between Non-Price Criteria and Rent Dissipation
            
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                    Section 3: The Core of the Theory of Price Control
            
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                    Section 4: Rent Dissipation as a Mode of Thinking
            
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                    Lecture 26 Political Economics
            
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                    Section 1: The Nature of Nation from the Perspective of Economics
            
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                    Section 2: The Definition of Dictatorship and Democracy
            
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                    Section 3: Tyranny of the Majority
            
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                    Section 4: Arrow’s Impossibility Theorem and the Median-Voter Theorem
            
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                    Section 5: Democratic Voting Infringes on PPRs
            
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                    Section 6: The Difficulties of Dictatorship
            
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                                <h1 id="section-3-why-do-we-need-to-study-economics">Section 3: Why Do We Need to Study Economics?</h1>
<p>Why do we need to study Economics? Many readers may believe that those individuals major in economics are easier to find good jobs (and jobs with high incomes), or learn to know how to earn money. In reality, those whose careers are economic-related do have higher incomes, but they are not the richest ones while the richest ones may not be those major in economics or even have never learned economics.</p>
<p>As an economics teacher, I hope that the readers would master the way of thinking like an economist as most are not, and will not be economists. They do not need to be economists, but they need to think like economists. </p>
<p>As mentioned above, economics is a science, analyzing problems objectively just like natural science. However, natural science only teaches us how to analyze problems about the matter, while economics teaches us how to analyze the problems about human. To learn to think like an economist is to learn to analyze problems objectively, ruling out emotions like anger, as this should be economics most benefit to ordinary people.</p>
<p>Besides, some economists distort economics analysis for their interests and try to mislead the public and governments to benefit themselves. Therefore, if one has learned economics, he will not be fooled by such economists. Mrs. Robinson, a famous British female economist, once said: &#x201C;I study economics in order to avoid being deceived by economists.&#x201D; That is also my Motto.</p>

                                
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